Canadian vehicle parts that are covered under the free trade agreement with the United States will not be subject to any tariffs, according to a new directive from U.S. Customs.
In March, President Donald Trump announced 25 percent tariffs for vehicle parts that were imported from other countries. Their implementation had been delayed until May 3.
However, a new directive from U.S. Customs and Border Protection released on May 1 indicates zero tariffs for parts that fall under the Canada-United States-Mexico Agreement (CUSMA).
Parts that do not fall under CUSMA will see a 25 percent tariff imposed, the directive said.
It also indicates the tariff exemption does not cover automobile knock-down kits or parts compilations….